Gemini Communication has soared 14% to Rs 26.25 after the board of directors provided final approval for the buyback of equity shares of the company.
“The board proposed to buyback shares at a maximum price of Rs 45 per equity share, and the maximum amount utilized for the buy-back shall be Rs 29.78 crore, which is within 25% of the company’s fully paid-up equity share capital and free reserves as per the audited balance sheet as on March 31, 2011," the company said in a filing to the stock exchanges.
The buyback would be through open market purchases from the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). The promoter and promoter group of the company shall not participate in the proposed buy-back process, it added.
The stock hit a high of Rs 26.40 after opening at Rs 25 on the NSE. A combined 101,001 shares have already changed hands on the counter, as against an average around 50,000 shares traded daily in past two weeks.